We have Cromwell's financial statements from this year. Income Statement Sales 1,000,000 (250,000) (180,000) 570,000 (130,000)...

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We have Cromwells financial statements from this year. Income Statement Sales 1,000,000 (250,000) (180,000) 570,000 (130,000) 440,000 (132,000) 308,000 Costs Depreciation EBIT Interest expense EBT Taxes (.3) Net Income Dividends 231,000 Additions to Retained Earnings 77,000

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Answer 1

Answer #1

Full capacity sales:

= Sales at 85% utilised capacity/85%

= $1,000,000/85%

= $1,176,471

Hence, sales at full capacity is $1,176,471

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Answer 2

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